The total variable cost increases in direct proportion to volume.

Name: The total variable cost increases in direct proportion to volume.
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Question

Quizplus · Accepted Answer

Total variable cost is the cost that varies with the changes in output, and thus it increases in direct proportion to the volume of production. This is because as the volume of production increases, the usage and cost of inputs (materials, labor, etc.) also increases in direct proportion.

The Total Variable Cost Increases in Direct Proportion to Volume